Latest Stock Buy or Sell? Make More Informed Decisions!

Please note that we were unable to access this program today. The TV showed it as a Repeat Program and they replayed Yesterday's program with Stephen Takacsy as the guest. - Bill

Markets. In the last 8 years we have seen global debt increase by over 40%, and is over $50 trillion by now. This has largely been a result of low interest rates making debt very attractive, quantitative easing and Central Banks have built their balance sheets up to huge amounts. We are not immune in Canada, not so much on the government side as on the consumer side. In spite of that and all the 3^rd geopolitical turmoil, markets seem to continue to just pace ahead. We have had a pretty good run for a number of years. In his view, valuations are looking a little bit stretched. This is a time to be somewhat cautious in the market. Be prepared to act on any downdraft, but be very careful about the prices you pay going into stocks. He is always looking for things that are a minimum of 3-5 years and longer. In energy, you might well be early. You want to be in the companies that are financially strong, well-managed and companies that take advantage of the current weak environment.

He likes this company. Not too long ago he was buying it close to $10. They have a fairly sizable operation in the Alberta area, and a good deal of that is energy related. As a result, he thinks that is why it has pulled back as much as it has. Over the next few years, with the infrastructure building that is going to occur, this is certainly going to be a participant. Try to buy close to $12-$12.50.

“Say on pay” was rejected at the annual meeting. Would this have made a big deal of difference to the value of a company stock? The whole “Say on pay” is a pretty complicated issue. Institutional shareholders want to see more long-term incentives to be met with longer-term rewards. This bank caught everybody off guard with the extra pay packages for the leaving executives. Investors are not well served by those kinds of surprises and it does have some effect.

Being overly punished for some of its past transgressions. They are now suffering from being Alberta-based. A riskier stock than some of the others in the industry. It is a much smaller company so your risk-reward parameters are a lot greater. If things start going well again, you could see this stock increased significantly. At current price levels, it is probably really good value, but it is hard to know how long it will take to see that value surface.

A very well-managed company. Made some significant acquisitions in land areas that give them potential drilling targets for years to come. He expects them to live beyond the current problems in the industry with a good chance to prosper again. At this level it is a good longer term hold.

Within the materials group, this is one of his favourite stocks, primarily because Constancia is coming on stream this year. Over the next couple of years, he expects to see significant cash flow being thrown out of their operations. Prefers it at $10, but wouldn’t hesitate to buy at this level.

Extremely well-managed company. They did a $1 billion issue in the last week and are making a significant purchase of some properties in the US. Thinks the combination of new equity and their debt has caused the stock to pull back a little. People are waiting for more details on the acquisitions they are making. He has been looking at this.

Given the current price, looking out over the next few years he can see other companies in the sector that are perhaps selling at more modest multiples to the potential growth.

(A Top Pick May 8/14. Up 29.94%.) Not adding at the current price, but if it was to pull back 10%-15% he would be looking at adding. Good management. A unique company in the way that it is structured. As they grow, they are seeing more and more opportunities opening up to them, particularly in the US. Expecting there will be rising dividends as the years go on.

(A Top Pick May 8/14. Up 17.46%.) This has gone under a transition over the last couple of years, and they seem to be doing much better now in the box board container market. The cost of materials has mitigated margins to some extent.

(A Top Pick May 8/14. Up 28.16%.) A family controlled a company that is run for the benefit of all shareholders. Over the years he has seen them pay a special dividend from time to time. Very cash rich. An excellent way to participate in the turnaround that we are seeing at Loblaw’s (L-T).

At current prices this could be a good long-term investment. They have had a fairly good turn of events lately. Their last quarter had a bit of a beat and they increased their dividend at that point. It is a little bit murky over the next year as they expect global demand is probably going to be a little bit less then last year. Thinks earnings in the next couple of years should get over the $2 level. Also, feels the dividend is secure. He prefers Agrium (AGU-T) as it is a little more diversified.

With respect to oil service companies, drillers, etc. it is a question of when do you want to step in. It depends on the time horizon that you are looking at for your investment. This is a well-run company and will be a survivor in the current environment, but you may be sitting on a stock that doesn’t do much for a year or 2. Not a bad place to have this in your portfolio as a longer-term investment.

He likes this company. With the industry currently undergoing the problems that it has, you really want to be in the companies that are going to survive, and this is one of the more diversified companies in the oil sector. An extremely well-managed company. In the next couple of years, he is expecting that we will see cash flow in the $5 range, maybe even $6. It will be subject to some shocks going forward.